CG Blockchain Inc., BCT In. (SEZC), has been charged with fraud by the US Securities and Exchange Commission (SEC), for funds raised on an ICO at over 30 million dollars by the companies operators, Edith Pardo and Boaz Manor.
In a SEC press release from Friday, it’s being said that Manor allegedly hid a criminal conviction from the past. It seems he was working under a fake a name and passed as Pardo’s employee in order to begin the raising of funds for the project. In an effort to do this, he even disguised himself because his actual identity may have been toxic for the company.
Investors Should Check the Identity of Those Who Are Raising Funds
Joseph Sansone, SEC Market Abuse Unit’s co-chief, said in a statement that investors should check the identities of people who are raising funds. These are his Sansone’s exact words:
“As alleged in our complaint, Manor’s brazen scheme to conceal his identity and criminal history deprived investors of essential information and allowed defendants to take over $30 million from investors’ pockets.”
The US Attorney’s Office for the District of New Jersey also filed criminal charges against Manor and Pardo also says the SEC. Back in 2017 and 2018, Manor raised funds for the Blockchain Terminal cryptocurrency version.
SEC Looking for Disgorgement of Profits Obtained Illegally
The SEC is seeking disgorgement of profits obtained illegally plus penalties, injunctive relief and interest. It also wants to bar Manor and Pardo from ever being able to occupy the positions of director and officer within public companies, also from taking part in any securities offering in the future.
Manor was sentenced to 4 years in prison in Canada back in 2012 because he siphoned $106 million from a hedge fund he co-founded in Toronto. It was reported the Canadian fund was managing $800 million in assets from 26,000 investors. SEC sent on January 14 a warning through its Investor Education and Advocacy subsidiary, saying people should keep their eyes open when being presented initial coin offerings.